Microsoft shares hit record highs, powered by growing cloud sales

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Microsoft shares hit record highs, powered by growing cloud sales
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Microsoft Corp on Thursday beat analysts' estimates for fourth-quarter reve...

) on Thursday beat analysts’ estimates for fourth-quarter revenue and profit, driven by continued sales increases from its cloud business and sending its shares to all-time highs.

Revenue growth in Azure was 64% in the fiscal fourth quarter ended June 30, compared with 89% a year earlier and 73% in the prior quarter. Microsoft does not provide an absolute revenue figure for Azure, blending it into its “intelligent cloud unit,” which had revenue of $11.4 billion compared with analyst expectations of $11.0 billion, according to Refinitiv data.

“The pressure was obviously on but they executed,” said Hal Eddins, chief economist for Microsoft shareholder Capital Investment Counsel. “The cloud is such a key driver of growth for them and they seem to have painted a big bullseye on the back of AWS.” Microsoft has tried to set itself apart from AWS by combining its traditional software that runs in a customer’s own data center with its Azure products, a strategy that Chris Voce, analyst at Forrester, said helped power the company’s results.

Meanwhile, its personal computing division, home to Windows software, rose to $11.3 billion, compared with analyst estimates of $10.98 billion. The unit also includes Xbox gaming consoles, the Bing online search service and Surface laptops.

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